How to track stocks as a business asset in Money (899622)

MORE INFORMATION

You can create and use a cash account to track your stock assets. To create a cash account, follow the steps that are appropriate for your version of Microsoft Money.

Microsoft Money 2005 Small Business and later versions

1. Start Money Small Business.
2. Click Banking.
3. In the left pane, click Add a new account.
4. Click Other, and then click Next.
5. Select Cash as the type, and then click Next.
6. Select the Business account radio button, select Track transactions and other details, and then click Next.
7. Type a name for the account, type a start date, and then click Next.
8. Select Business as the primary purpose, and then click Next.
9. Type the value of the account, and then click Finish.

Microsoft Money 2004 Small Business and Microsoft Money 2003 Deluxe and Business

1. On the Accounts & Bills menu, click Account Setup.
2. On the Set up your accounts in Money page, click Add a new account.
3. Click Not held at a bank, broker, or other financial institution - for example, accounts receivable or a house account, and then click Next.
4. In the New Account dialog box, click Cash, and then click Next.
5. Type a name for the cash account, specify a start date, and then click Next.
6. Click Business, and then click Next. By configuring the cash account as a business account, the assets will appear in your profit and loss statement.
7. Type the balance of the new account and the type of currency, and then click Finish.

When you configure the cash account as a business account, the assets will appear in your profit and loss statement.

When you have activity in the business investment account, mirror the activity in the cash account. For more information, see the following examples:

• BUYS
  If you buy stock, transfer the amount of the purchase to the cash account.
• SELLS
  If you sell the stock at a price that is more than the original buying price, add a deposit for the amount of the profit to the cash account. You can use the Investment Income category to define the deposit. If you sell the stock at a price that is less than the original buying price, add a withdrawal for the amount of the loss. You can use the Interest Paid category, or you can create an investment losses category. In either case, you may want to transfer the final amount to the corresponding business account.
• DIVIDENDS
  If you are keeping the dividends, add them as a sale. If you are reinvesting the dividends, add the dividend amount to the cash account just as you purchased the stock.

Record transactions where you buy or sell stock. You can also record transactions that track dividends. You only have to use the cash account when actual monies are exchanged. For example, use the cash account as you would a broker.